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US retail sales fall in March as car sales slow

The US Commerce Department said retail and food services sales fell 0.3% in March
The US Commerce Department said retail and food services sales fell 0.3% in March

US retail sales fell in March, dragged down by the car sector, according to official data today that suggested tepid consumer spending. 

The US Commerce Department said retail and food services sales fell 0.3% in March and after sales in February were flat. 

The month-over-month decline was due to a 2.1% drop in motor vehicle sales. 

Stripping out cars, US retail sales rose 0.2%, lifted mainly by rising petrol prices. 

Retail sales are a snapshot on US consumer spending, the main motor of the economy that accounts for two thirds of activity. 

Analysts had forecast a 0.1% rise for all sales and 0.4% for ex-auto sales.

Year-over-year, retail sales were up 1.7% in March, the weakest growth since November. 

Total sales in the first quarter were up 2.8% from the same time last year year. 

Petrol sales at the pump rose 0.9% in March as oil prices lifted off February lows. Building material and garden supply stores rang up a 1.4% gain. 

Other increases registered included sales at health and personal care stores and general merchandise stores. 

Outside of falling car sales, the sharpest declines were at restaurants and bars, down 0.8%. Online sales dipped 0.1%.